Arch Capital GroupMIL:1ACGL +1.41%68 Pretax Margin % is 25.34% as of Mar. 2026, which is 18% above its 10-year median of 21.40. GuruFocus rates MIL:1ACGL with a GF Score™ of 68/100 and a GF Value™ of €100.60 (Modestly Undervalued). The stock has 1 warning sign investors should review. Among 506 Insurance companies, Arch Capital Group ranks better than 84.58% on this metric.
The historical rank and industry rank for Arch Capital Group's Pretax Margin % or its related term are showing as below:
MIL:1ACGL'
s Pretax Margin % Range Over the Past 10 Years
Min: 14.1 Med: 21.4 Max: 28.36
Current: 28.36
MIL:1ACGL's Pretax Margin % is ranked better than 84.58% of 506
companies
in the Insurance industry
Industry Median: 12.02
vs MIL:1ACGL: 28.36
Arch Capital Group (MIL:1ACGL) Pretax Margin % Explanation
The pretax margin, as know as pretax profit margin, is widely used to measure the operating efficiency of a company before deducting taxes.
The pretax margin is sometimes preferred over the net margin as tax expenditures can make profitability comparisons between companies misleading.
It is a useful tool to compare companies operating in the same sector and less effective when comparing companies from other sectors as each industry generally has different operating expenses and sales patterns.
The long term trend of the pretax margin is a good indicator of the competitiveness and health of the business.
Arch Capital Group Pretax Margin % Related Terms
Arch Capital Group Pretax Margin % Historical Data
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The historical data trend for Arch Capital Group's Pretax Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
MIL:1ACGL vs HIG, AIG, PLGO: Pretax Margin % Comparison
For the Insurance - Diversified subindustry, Arch Capital Group's Pretax Margin %, along with its competitors' market caps and Pretax Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Arch Capital Group Pretax Margin % vs Insurance Industry
For the Insurance industry and Financial Services sector, Arch Capital Group's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where Arch Capital Group's Pretax Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Arch Capital Group (MIL:1ACGL) has a Pretax Margin % of 25.34% as of Mar. 2026. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Arch Capital Group and its competitors. This is 18% above median its historical median of 21.40. Over the past decade, Arch Capital Group's Pretax Margin % has ranged from 14.10 to 28.36. According to the industry distribution chart, Arch Capital Group ranks #78 out of 506 companies in the Insurance industry, placing it in the top 15.4%.
Is Arch Capital Group's Pretax Margin % too high?
Arch Capital Group's current Pretax Margin % of 25.34% is 18% above median its 10-year median of 21.40. Over the past 10 years, this metric has ranged from a low of 14.10 to a high of 28.36. The Insurance industry median Pretax Margin % is 12.02. Arch Capital Group's value of 25.34% is 110.8% above this industry median. Based on the distribution chart, Arch Capital Group ranks #78 out of 506 companies in the Insurance industry, which is in the top quartile — a strong position relative to peers. Overall, Arch Capital Group has a GF Score™ of 68/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Arch Capital Group's Pretax Margin % compare to HIG and AIG?
According to the Insurance industry distribution chart, Arch Capital Group ranks #78 out of 506 companies for Pretax Margin %. This places Arch Capital Group in the top 15% of its industry — outperforming the majority of peers. The industry median Pretax Margin % is 12.02. Arch Capital Group's value of 25.34% is 110.8% above this benchmark. Historically, Arch Capital Group's own Pretax Margin % has ranged from 14.10 to 28.36 over the past decade. While the company's 10-year median is 21.40 vs. the industry median of 12.02, Arch Capital Group has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Pretax Margin % for an Insurance company?
The median Pretax Margin % among Insurance companies is 12.02, based on 506 companies in the industry. Companies in the top quartile (top 25%) have a Pretax Margin % significantly above this median, while those in the bottom quartile fall well below. However, Pretax Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Arch Capital Group's current Pretax Margin % of 25.34% is 110.8% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Pretax Margin % mean?
A high Pretax Margin % can signal that a stock is expensive relative to its fundamentals. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Arch Capital Group and its competitors. For the Insurance industry, the median Pretax Margin % is 12.02 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Arch Capital Group's current Pretax Margin % is 25.34%, which is 18% above median its own 10-year median of 21.40. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Arch Capital Group stock overvalued right now?
Based on GuruFocus' analysis, Arch Capital Group (MIL:1ACGL) is currently considered Modestly Undervalued. The stock's GF Value™ is €100.60, compared to a current price of €84.88 — trading 15.6% below its estimated fair value. The current Pretax Margin % is 25.34%, which is 18% above median its 10-year median of 21.40 and 110.8% above the Insurance industry median of 12.02. Arch Capital Group's overall GF Score™ is 68/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Pretax Margin % calculated?
Pretax Margin % is calculated from a company's financial statements. For Arch Capital Group (MIL:1ACGL), the current Pretax Margin % is 25.34% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Arch Capital Group (MIL:1ACGL) Overvalued in 2026?
Based on GuruFocus' analysis, Arch Capital Group stock appears to be undervalued.
The current stock price of €84.88 is trading 15.6% below its estimated GF Value™ of €100.60.
GuruFocus considers Arch Capital Group to be Modestly Undervalued.
Key valuation signals for MIL:1ACGL:
Pretax Margin %: 25.34% (18% above median its 10-year median of 21.40)
GF Value™: €100.60 vs. price of €84.88 (15.6% below fair value)
Industry Position: 110.8% above the Insurance median (#78 of 506)
No single metric tells the full story. See the MIL:1ACGL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Arch Capital Group Ltd is a Bermuda company that writes insurance and reinsurance with operations in the United States, Canada, Europe, Australia, and the United Kingdom. The business operates through three underwriting segments: insurance, reinsurance, and mortgage. The insurance segment provides specialty risk solutions to clients across various industries. The reinsurance segment provides reinsurance services which cover property catastrophe, property, liability, marine, aviation and space, trade credit and surety, agriculture, accident, life and health, and political risk. The mortgage business provides risk management and risk financing products to the mortgage insurance sectors through platforms in the U.S., Europe and Bermuda.
68GF Score
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